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Weekly ETF Monitor for week ending 5 June 2020

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Jun 10, 2020

This week's highlights Bullish sentiment continued last week as most major equity indexes ended the week up. Global Banks surged and oil continued to rally on the back of extended output cuts. Among the top performers for the week were BetaShares Global Banks ETF (Hedged) (BNKS) up 14% and BetaShares Crude Oil Index ETF - Ccy Hedged (OOO) up 10.1%. Geared US Dollar currency ETFs, miners and precious metals were amongst the worst performers. BetaShares Strong US Dollar Hedge Fund (YANK) was down -10.7% and VanEck Vectors Gold Miners ETF (GDX) was down -9.6%. Flows for the week were mostly seen across Cash and Core exposure ETFs. iShares Core Cash ETF (BILL) had A$43.1m of inflows and iShares CORE Composite Bond ETF (IAF) had A$21.3m of inflows. Outflows were highest across iShares S&P 500 AUD Hedged (IHVV) and iShares Global Consumer Staples ETF (IXI) Chinese Equity, Technology and precious metals remain the best performers YTD.

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Clean energy in your clients’ portfolios

Jun 10, 2020

Battery technology investments could be the answer for clients with an interest in the environment and a desire to incorporate this within their portfolios. Renewable energy and electric cars are set to take over fossil fuels as a source of energy in coming decades, but to do so, battery technology and storage will be critical. Renewables and battery technology Renewable energy, namely solar and wind power, are intermittent power sources. To rely on these is to require reliable energy storage in the form of batteries. Likewise, electric cars are completely dependent on battery storage to operate. The South Australian Hornsdale Power Reserve is the largest example in the world of battery storage for renewable energy, making Australia one of the leaders (surprisingly, given our coal industry) in transformation. Wind and solar energy are forecast to supply around 48% of world electricity needs by 2050, with battery technology, gas peakers (turbines or engines that burn natural gas) and dynamic demand anticipated to drive market penetration of solar and wind by more than 80% according to BloombergNEF[1] . To accommodate this growth, utility scale battery energy storage capacity is expected to more than double by 2022, while the market for battery technology is anticipated to reach $90bn by 2025, growing more than 12%[2][3] . How to invest in battery technology? The value chain for battery technology ranges from mining companies, mining for metals like lithium, to manufacturers of battery storage and storage technology providers. All are potential beneficiaries of the anticipated growth in this industry. There are a range of ways to access battery technology in your clients’ portfolios. Direct shares in value chain component companies with the bulk of their revenue related to this area, such as mining companies like Pilbara Minerals or battery manufacturers. Direct shares in broader companies which still include exposure to battery technology, such as Panasonic. Managed funds, either active options or ETFs such as ETFS Battery Tech & Lithium ETF (ASX code: ACDC) which offer exposure across the industry. For more information about ETFS Battery Tech & Lithium ETF (ASX code: ACDC) or investing in battery technology for your clients, please contact us. Sales Trading Phone +61 2 8311 3488 Email: sales@etfsecurities.com.au Phone +61 2 8311 3483 Email: primarymarkets@etfsecurities.com.au This document is communicated by ETFS Management (AUS) Limited (Australian Financial Services Licence Number 466778) (“ETFS”). This document may not be reproduced, distributed or published [1] https://about.bnef.com/new-energy-outlook/ [2] www.forbes.com/sites/mergermarket/2020/02/18/the-future-of-battery-energy-storage-is-upon-us/#d5b173d4a185/ [3] www.mordorintelligence.com/industry-reports/global-battery-market-industry/

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Weekly ETF Monitor for week ending 29 May 2020

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Jun 02, 2020

This week's highlights Hopes of economic re-opening extended to optimism for the financial sector last week. Australian bank ETFs were the clear top performers, with MVB, OZF and QFN all registering double digit returns for the week. High yield domestic equity funds also benefited from the bank rally, with SYI, RDV and active fund EINC all amongst the top performers. Gold miners (GDX and MNRS), biotechnology (CURE) and big-tech (FANG) pulled-back from recent strong performances to lead the equity decliners for the week. Gold remained steady, above US$1,700/oz last week, though a rising Australian dollar saw GOLD fall 2% for the week. Platinum fund ETPMPT gave up some of last week’s gains, falling 2.9%. While leveraged US dollar fund YANK dropped 4.6% as the Australian dollar steamed towards US67c . Total flows into domestically domiciled ETFs were $281m, while outflows totalled $45m. Bearish domestic equity fund BBOZ saw the biggest inflows for the week, followed by GOLD. Domestic cash fund AAA and currency hedge S&P 500 (IHVV) saw the bulk of the week’s outflows. BBOZ was the most traded fund for the week, followed by domestic equity fund VAS. NDQ and OOO saw above average volumes. ETFS EURO STOXX 50 ETF (ESTX), which invests in 50 of the largest companies in the eurozone returned 5.3% for the week. Optimism is rising that the policy response to coronavirus in Europe, including the establishment of an EU recovery fund and the purchasing of riskier assets by the ECB, will see a quicker than expected economic rebound.

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Webinar Recording: Gold - A Precious Metal for Portfolios, 2020

Jun 02, 2020

Recorded on the 27th May 2020. This webinar focuses on the alternative asset that is gold. In this webinar, we discussed: Gold's strategic and tactical place in a portfolio Understanding gold's valuation factors: The short, medium and long-term price drivers Examining the recent rise of gold The future outlook To watch the webinar recording, please click here.

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Weekly ETF Monitor for week ending 22 May 2020

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May 26, 2020

This week's highlights Equity markets returned to risk-on mode last week with cyclical sectors leading the way. Resource (QRE and OZR) and technology (ATEC) sector ETFs were the top domestic performers for the week. U.S. small- and mid-caps (IJR and IJH) along with global property (REIT) were the best performing international equity funds. Asian focused funds (CNEW, PAXX, NDIA, CETF, VAE and IZZ) were all amongst the week’s poorest performers along with gold miners (GDX) Gold stabilised above US$1,700/oz last week, while other precious metals advanced. Platinum fund ETPMPT was one of the week’s top performers, returning 6.9%. Oil continued to rise from its April lows, with OOO returning 10.7% last week. The Australian dollar moved back above US65c . Total flows into domestically domiciled ETFs were $372m, while outflows totalled $91m. Domestic cash fund BILL saw the biggest inflows for the week, followed by bond fund IAF and GOLD. Domestic cash fund AAA saws the bulk of the week’s outflows. Bearish equity fund BBOZ was the most traded fund for the week, followed by domestic equity fund VAS. GOLD saw above average volumes. ETFS Physical Platinum (ETPMPT), which invests in physical platinum bullion, returned 6.9% for the week. Prices are being driven by a combination of rising demand, mainly from China, as vehicle production comes back on line, in contrast to restricted supply caused by mine lockdowns in South Africa, the world’s largest producer.

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Weekly ETF Monitor for week ending 15 May 2020

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May 20, 2020

This week's highlights Equity markets mostly declined last week as the recent rally stalled, though the domestic market ended the week in positive territory. Gold miners (GDX) and biotechnology (CURE) ETFs were the top performing equity funds. Global property funds (REIT and DJRE) were the biggest decliners, followed by U.S. small caps (IJR), banks (BNKS) and global value stocks (VVLU). Precious metals rose across the board, with silver leading the way. ETPMAG gained 10.6% to be the week’s top performing fund, while GOLD rose by 3.8%. Strong U.S. dollar fund YANK was also amongst the top performers. Total flows into domestically domiciled ETFs were $407m, while outflows totalled $124m. Domestic equity fund IOZ saw the biggest inflows for the week, followed by bond fund IAF and STW. Global corporate bond fund IHBC, cash fund ISEC and resources sector fund QRE saw the week’s biggest outflows. IOZ was the most traded fund for the week, followed by bearish equity fund BBOZ. Cash fund BILL saw above average volumes. ETFS Physical Silver (ETPMAG), which invests in physical silver bullion, returned 10.6% for the week. Being a more industrial commodity than gold, silver saw much bigger drawdowns in late-February and early-March as markets reacted to the rapid spread of COVID-19. At that time the ratio of gold to silver prices hit all-time highs. Since bottoming on 19th March, however, ETPMAG has rebounded by 23.7%, compared to 7.6% for GOLD over the same period.

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